- The stablecoin market capitalization has reached its highest level since April 2022, following eight consecutive months of growth, according to the latest issue of CCData’s “Stablecoins & CBDCs” Report.
- The stablecoin sector has recently experienced substantial growth and heightened scrutiny.
- Leading the charge in this resurgence is Circle’s USDC, which has witnessed its market capitalization rise for the sixth consecutive month, reaching $32.6 billion in May.
Discover the latest trends and developments in the stablecoin market as it reaches new heights, with insights from CCData’s comprehensive report.
Stablecoin Market Cap Reaches New Heights
According to the May 2024 issue of CCData’s Stablecoins & CBDCs Report, the total market capitalization of stablecoins has risen to an impressive $161 billion, marking the eighth consecutive increase in the end-of-month market cap. This surge has propelled stablecoins to their highest level since April 2022, signifying a remarkable recovery from the losses incurred following the collapse of TerraUSD, which had triggered a seventeen-month downtrend.
Circle’s USDC Leads the Resurgence
Leading the charge in this resurgence is Circle’s USDC, which has witnessed its market capitalization rise for the sixth consecutive month, reaching $32.6 billion in May. This growth coincides with a surge in demand for the stablecoin, with USDC pairs recording an all-time high monthly trading volume in March. Consequently, USDC’s market share by trading volume has risen for the second consecutive month, now standing at an impressive 8.27%.
Tether Holdings Reports Record Profits
Meanwhile, Tether Holdings has announced a record quarterly profit of $4.52 billion in their reserves report for Q1 2024. This remarkable achievement aligns with USDT’s sustained uptrend in market capitalization, which has been on the rise for nine consecutive months, climbing from $82.8 billion in August 2023 to its current level of $111 billion.
Challenges for Nigeria’s e-Naira
However, not all stablecoins have enjoyed the same level of success. The latest data from the International Monetary Fund reveals that the adoption of Nigeria’s e-Naira has failed to gain significant traction. Since its launch in October 2021, only 854,512 transactions have been executed using the CBDC currency. The report indicates that a total of 29.3 billion NGN worth of transactions has been made using e-Naira, representing a modest increase of only $7.3 billion from the previous update in March 2023.
Conclusion
The stablecoin market is experiencing a significant resurgence, with major players like USDC and USDT leading the charge. However, challenges remain for certain digital currencies like Nigeria’s e-Naira. As the market continues to evolve, investors and regulators alike will need to stay informed to navigate this dynamic landscape effectively.
